InvestSMART

Fletcher Building Limited (ASX:FBU)

ALERT: Price-sensitive ASX Announcement for FBU
Current share price for FBU : $3.160 -0.12 (-3.66%)+
Announcement
Release
20 Jan 2026 7:30AM
Price at Release
$3.280
Full Release
download
Summary
On 20 January 2026, Fletcher Building Limited announced the sale of its Construction Division to VINCI Construction for $315.6 million, with a possible additional $18.5 million pending contract negotiations. This sale aligns with Fletcher Building's strategy to focus on building products manufacturing and distribution. The transaction, which includes Fletcher Construction Holdings and its New Zealand units Higgins, Brian Perry Civil, and Fletcher Construction Major Projects, is subject to regulatory approvals and conditions. Despite selling its New Zealand operations, Fletcher Building will retain responsibilities related to legacy projects. Approximately 2,300 employees will transfer to VINCI, ensuring continuity. The South Pacific operations are excluded from the sale. Fletcher Building expects to recognize additional provisions of $55 to $65 million for future claims on retained construction contracts. Completion is anticipated by Q1 FY27.
Key Points
  • Fletcher Building sells Construction Division to VINCI for $315.6 million.
  • Potential additional $18.5 million subject to contract outcomes.
  • Sale part of strategy to focus on building products and distribution.
  • Higgins, Brian Perry Civil, and Major Projects included in sale.
  • South Pacific operations and legacy project responsibilities retained.
  • Approximately 2,300 employees will transfer to VINCI.
  • Completion expected by Q1 FY27, pending regulatory approvals.
  • Additional provisions of $55-$65 million for future claims.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.